Salesforce Primes $100 Million For New Startup Fund
02 Mai 2017 - 2:29PM
Dow Jones News
By Jay Greene
Salesforce.com Inc. is pumping $100 million into its fourth
investment fund, aimed at helping startups develop apps that work
with its business software services.
Salesforce Ventures, the company's corporate investment arm,
launched the new Salesforce Platform Fund on Tuesday to support
early-stage companies, with the goal of "building an ecosystem of
partners around us, " said John Somorjai, executive vice president
of corporate development and Salesforce Ventures.
Salesforce is among several tech companies with venture funds
that invest in startups for varying reasons. The venture arms of
Salesforce, Qualcomm Inc. and Microsoft Corp. tend to focus more on
the strategic return to their respective companies. Others, such as
Intel Capital and Alphabet Inc.'s GV, are set up like traditional
venture-capital funds with the chief goal of delivering financial
returns.
More generally, corporate venture capital has gained popularity
in recent years as old-line companies have sought to keep up with
shifts in technology. Boeing Co., Kellogg Co. and Campbell Soup Co.
have all set up venture funds in the past year.
Past Salesforce investments include Web-storage company Box
Inc., document-sharing startup DocuSign Inc., and communications
software maker Twilio Inc., all of which have services that run on
Salesforce's cloud-computing platform. The company has invested in
more than 200 startups since 2009, with nearly 50 of those being
acquired and eight holding initial public offerings.
Salesforce focuses on startups that already have customers, Mr.
Somorjai said. The company's investments, made alongside
venture-capital firms, have ranged between $250,000 and $10
million. Salesforce takes ownership stakes under 10% and doesn't
seek board seats.
The new fund aims to provide a boost to companies fueling
Salesforce's growth. The company recently stepped up efforts to
weave artificial intelligence into its services, and that interest
will carry over to its investments.
Salesforce Ventures doesn't disclose its financial returns, but
a company regulatory filing noted that the fair-market value of its
privately held investments as of Jan. 31 was $758.3 million, and
that included $232.3 million in unrealized gains.
Salesforce's previous three funds have invested in mobile
technology, European startups and businesses focused on the
company's software-development platform. Mr. Somorjai expects to
spend the $100 million earmarked for the new fund within two
years.
Write to Jay Greene at Jay.Greene@wsj.com
(END) Dow Jones Newswires
May 02, 2017 08:14 ET (12:14 GMT)
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